The effect of corporate governance mechanisms on risk disclosure: evidence from Malaysian government linked companies (GLCs) / Amirrul Muhminin Darussamin

• Main Author: Darussamin, Amirrul Muhminin
• Format: Thesis
• Language: English
• Published: 2015
• Online Access: https://ir.uitm.edu.my/id/eprint/17607/2/TM_AMIRRUL%20MUHMININ%20DARUSSAMIN%20AC%2015_5.pdf; https://ir.uitm.edu.my/id/eprint/17607/
• Institution: Universiti Teknologi Mara

This study examines on the effect of corporate governance mechanism; risk management committee, board independences, board financial expertise, multiple directorship and board size on risk disclosure, specifically in the Government-Linked Companies (GLCs). The agency theory is used to link corporate governance mechanism and risk disclosure. The method used in this study is content analysis, this study covers the period 2014. This study involves 36 GLCs companies. The findings reveal that corporate governance mechanisms i.e. multiple directorship and board size do have influence on the risk disclosure nevertheless the findings on other variables; risk management committee, board independence and the board expertise, did not reflect any association with risk disclosure. These findings show that the risk management committee, board independence and board finance expertise do not clearly affect risk disclosure in the context of Malaysian GLCs. Even though the risk management committee is separate from the audit committee, the large number of board independence and board financial expertise should have affected risk disclosure. It appears that their influences do not completely contribute to risk disclosure. The finding show that the Board of Director should consider appointing the board member with multiple directorships and the board must consider expanding their board size for greater disclosure.